Encision receives PPP funding
BOULDER, Col., February 10, 2021 / PRNewswire / – Encision Inc. (PK: ECIA), a medical device company with patented Active Electrode Monitoring (AEM®) technology that prevents dangerous stray electrosurgical burns during minimally invasive surgery, announced today have entered into an unsecured promissory note under the Paycheck Protection Program (the “PPP”) for a principal amount of $ 533,118. The PPP was established under the consolidated finance law of 2021, promulgated December 27, 2020.
The term of the PPP loan is two years with an interest rate of 1.0% per annum, which will be deferred for the first six months of the loan term. After the initial six-month deferral period, the loan requires monthly payments of principal and interest to maturity for any portion of the PPP loan that is not canceled. Under the CARES Act, a beneficiary of a PPP loan can request and obtain a forgiveness for all or part of the loans granted under the PPP. Any such discount will be determined based on the use of loan proceeds for salary costs, rent and utility costs, and maintenance of pay and employee levels.
“We are delighted to have received this funding,” said Gregory Trudel, President and CEO of Encision. “We appreciate Bank of America’s efforts to facilitate the process. We look forward to maintaining our energy in manufacturing performance, technical innovation and the introduction of new AEM Technology products. We plan to meet the requirements that will allow the cancellation of the entire loan proceeds that have been granted. “
Encision Inc. designs and markets a portfolio of high performance surgical instruments that deliver advancements in patient safety with AEM technology, surgical performance and added value to hospitals in a wide range of minimally invasive surgical procedures. Situated at Boulder, Colorado, the company was a pioneer in the development and deployment of active electrode monitoring, AEM technology, to eliminate dangerous parasitic energy burns during minimally invasive procedures. For more information on all of our products, please visit www.encision.com.
In accordance with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, the Company notes that statements in this press release and elsewhere that are forward-looking, which include anything other than historical information, involve risks and uncertainties that may cause results to differ materially from those indicated by forward-looking statements. Factors that could cause the Company’s actual results to differ materially include, among others, its ability to develop new or improved products and gain acceptance for these products in the market, its ability to increase its net sales through sales channels. distribution of the Company, its ability to compete successfully against other manufacturers of surgical instruments, insufficient amount of conversions from new accounts, insufficient liquidity to fund operations, delay in developing new products and obtaining the FDA approval for these new products and other factors discussed in documents filed by the Company with the Securities and Exchange Commission. Readers are encouraged to review the risk factors and other information contained in the company’s annual report on Form 10-K for the year ended. March 31, 2020 and subsequent filings with the Securities and Exchange Commission. We assume no obligation to publicly update any forward-looking statements, whether as a result of receipt of new information, future events or otherwise.
CONTACT: Mala Ray, Encision Inc., 303-444-2600, [email protected]
SOURCE Encision Inc.